Nokia | The Rise And Fall [Part 1]

The Rise And Fall Of Nokia

Prelude ( Part 1 of 3 )

Nokia one of the most widely recognized and on average universally liked companies ever to grace the face of this earth when I say the name Nokia you may think of a phone but you may also think of something bit more abstract and deeper than that it may remind you of brighter times of fond memories my very first phone was Nokia and this may be the case of many of you guys Nokia was the company that could do no wrong until of course they eventually did so what's the story behind this company and how could a company so successful so influential and so pioneering slip between the cracks to become a shoal of what it once was before eventually evaporating into the shadow of Microsoft the lessons learned from Nokia could teach us something important let's begin.

The Rise And Fall Of Nokia

Nokia's history dates back to 1865 when a mining engineer Frederic Ida stem set up his first wood pot mill in southern Finland a few years later he opened a second mill on the banks of the Nokian virtual River this river inspired him to name his company Nokia and I think that's kind of interesting because he would have no idea how widely recognized this name would become soon Nokia expanded into other industries such as rubber cables tires TVs boots and more so it's safe to say that the early Nokia was a completely different company to the one that we know and love with that in mind let's move on to when Nokia became the nokia that we actually know today.

We'll pick up the story in 1960s at this time there was a great deal going on in the world social political and new ways of thinking were gaining momentum in diverse places but overshadowing all of this was something particularly ominous the cold war in the mid to late 1960s the conflict wasn't so ice-cold a nuclear war was actually a possibility the communist superpower the USSR was testing their bombs and the steadfast capitalist USA was testing their bombs both of these parties were testing with increasing ferocity these tensions made the whole world nervous the tensions were felt even in the rather neutral country of Finland and they were taking action they were preparing for the worst the Finnish government wanted military research into radio telephone communications to help their country realize the full potential of reliable military communication a little company called Nokia got the contract from the expertise developed in communication later developed into a civilian radio, car, telephone network that spanned. 

The whole country by the start of the 1970s the system was very primitive by today's standards because he actually had to take turns to speak but the real boom and start for Nokia began in the 1980s when mass production took place the company began to expand into mass production methods of manufacturing the economy of scale meant added features less cost a smaller size and a cheaper price the company exported 50% of their product and expanded globally by 1985 the Finnish company finally hit the big time when they hit the USA by teaming up with Tandy during this time the concept of a mobile phone was incredible you didn't have to slot money into a machine to make a call you didn't have to wait in a payphone line and you didn't have to be at home hoping that the cable could stretch just that little bit longer anywhere anytime was the idea the vastness of the market was soon realized when sales exceeded predictions by 3,000 percent it just seemed that people love to talk and Nokia may have been onto something here it said that the secret to Nokia success in the late 1980s was their ability to tailor to different markets in the mobile industry while keeping the efforts going in various other industries in 1987. 

Nokia created the mobile a city man it was the first Nokia phone to make major news headlines due to the fact that Mikhail Gorbachev the leader of the Soviet Union at the time was spotted using the phone during press conferences the slogan for the city man was straight connection for those of you who need independence but it wasn't all smooth sailing and in 1988 to 1989 Nokia found itself in a crisis you see at this time the Soviet Union collapsed and there was a major recession in Europe so the demand for Nokia's diverse later products seemed to dry up over because of this there was a change in management and Jorma Ollila a former citibank banker came to take over a CEO in 1992 as a banker german new a thing or two about management he would make the one decision that would shape the company's future for the next decade and a half he decided to shut off all the company's extra proceeds and focus directly on Mobile's assuring in Nokia's golden period the 1990s this is the decade that Nokia truly left everyone else in the dust though the undisputed champions of one of the fastest growing industries in history and with that being said that's all we're gonna leave part one of the series 

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